BharatTaxGST

M/S Bhawar Life Style vs. Deputy Commissioner

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WP/16262/2023HC KarnatakaGSTCNR KAHC01038489202304 September 2024Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI. SANMATHI E I., ADVOCATEFor Respondent: SRI. AKASH B. SHETTY, ADVOCATE
AI SummaryAllowed

Facts

The petitioner failed to submit a reply to the Show Cause Notice and supporting documents for an assessment order. The petitioner claimed this omission was due to bonafide reasons and unavoidable circumstances.

Held

The High Court set aside the impugned order and remitted the matter back to the respondent. The petitioner was granted an opportunity to submit a reply and supporting documents for fresh consideration.

Key Issues

Whether the petitioner should be granted another opportunity to submit a reply and documents after failing to do so initially due to alleged bonafide reasons.

Sections Cited

Section 74(9)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:36292 WP No. 16262 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.16262 OF 2023 (T-RES) BETWEEN: M/S. BHAWAR LIFE STYLE NO.21, MODEL HOUSE STREET, BASAVANGUDI (REP. BY ITS PROPRIETOR: SUNIL KUMAR) …PETITIONER (BY SRI. SANMATHI E I., ADVOCATE) AND: 1. DEPUTY COMMISSIONER DIVISION – 3, BANGALORE SOUTH COMMISSIONERATE, BMTC BUILDING, BANASHANKARI, BENGALURU – 70. 2. THE COMMISSIONER OF CENTRAL TAX BENGALURU, (BENGALURU SOUTH COMMISSIONERATE REVIEW SECTION) BMTC BUILDING, BANASHANKARI, BENGALURU – 70. …RESPONDENTS (BY SRI. AKASH B. SHETTY, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF ASSESSMENT PASSED UNDER SECTION 74(9) OF CGST ACT BEARING DIN NO. 20220857YV000000000DA1, OIO Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:36292 WP No. 16262 of 2023 SI.NO.06/2022-23 (GST) SD-3-2440/2022 DATED 25.08.2022 (ANNEXURE – A). THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs: “The petitioner most respectfully prays that this Hon’ble High Court may be pleased to issue a writ of certiorari or a direction in the nature of a writ of certiorari quashing the following order of assessment passed under Section 74(9) of CGST Act bearing DIN No.20220857YV000000000DA1 OIO Sli.No.06/2022-23 (GST) 3-2440/22 – O.C.No.2440/22 dated 25.08.2022 (Annexure – A) & This Hon’ble High Court may be pleased to issue such other writ or writs or directions in the nature of writ as this Hon’ble High Court may deem it fit to grant in the facts and circumstances of the petitioner’s case.”

2.

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

3.

A perusal of the material on record will indicate that on 30.01.2020, a Show Cause Notice was issued to the petitioner NC: 2024:KHC:36292 followed by letters calling for personal hearing on 23.11.2021, 21.02.2022 and 12.05.2022, despite which the petitioner could not submit its reply nor produced supporting documents, as a result of which, respondents proceeded to pass the impugned Order in original on 25.08.2022, which is assailed in the present petition. It is submitted that if one more opportunity is granted to the petitioner by setting aside the impugned order and remitting the matter back to the concerned respondent for reconsideration afresh, petitioner would submit a detailed reply along with relevant documents and concerned respondent may be directed to consider the same and proceed further, in accordance with law.

4.

The said submission is placed on record.

5.

Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed.

6.

A perusal of the impugned order will indicate that respondent has recorded that the petitioner neither submitted his reply to the Show Cause Notice nor participated in the proceedings or submitted relevant documents in support of his claim. Under these circumstances, in view of the specific assertion on the part of NC: 2024:KHC:36292 the petitioner that his inability and omission to submit reply and documents was due to bonafide reasons, unavoidable circumstances and sufficient cause, I deem it just and appropriate to set aside the impugned order and remit the matter back to the concerned respondent for reconsideration afresh to the stage of petitioner submitting reply to the Show Cause Notice along with the documents.

7.

In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned order-in-original at Annexure – A dated 25.08.2022 is hereby set aside. (iii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice dated 25.08.2022. (iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondent No.1, who shall consider the same and proceed further in accordance with law. NC: 2024:KHC:36292 (v) Petitioner is permitted to appear before respondent No.2 on 30.09.2024. (S.R.KRISHNA KUMAR) JUDGE

SV List No.: 1 Sl No.: 53

Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.